Cumulus Eyes Reverse Stock Split
| RADIO ONLINE | Monday, September 12, 2016 |
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Cumulus Media has taken action to initiate a reverse 8:1 stock split in a "Pre 14K" filing filed with the U.S. Securities and Exchange Commission on Friday, Sept. 9. Per the filing, the company intends to engage in a reverse split of its Class A common stock, Class B common stock and Class C common stock-each at a ratio of one share for each eight shares. Cumulus stock has been trading at less than $1 as of October 2016 and was trading around $0.34 per share as of last week.
The move would reduce the number of authorized shares of CMLS common stock but also take it out of the "Penny Stock" category. Cumulus Media received a delisting warning from Nasdaq last November. According to Nasdaq trading rules, the failure of a company to meet a minimum closing bid price of at least $1 for 30 consecutive trading days can trigger delisting. Nasdaq has indicated that Cumulus has until early November 2016 for its shares to rise above the minimum required value of $1.
A special shareholders meeting is being scheduled although a specific date was not indicated in the filing. Individual and institutional holders of Cumulus shares will be allowed to vote in person or by proxy.
